Are You Sure Your USDC Rewards Are Safe?
By Jeff Albus
AI summary of the source article
The OCC finalized a rule under the GENIUS Act evaluating stablecoin rewards case by case rather than presuming they violate interest bans. The decision allows platforms like Coinbase to continue offering USDC rewards for now without safe harbor protection.
Why it matters
Rob Nichols, president and CEO of the American Bankers Association, stated the OCC's decision "will preserve the status quo for crypto platforms despite Congress’s clear intent to protect local lending."
Key facts
- The OCC finalized its nonbank stablecoin issuer rule on Oct. 21, effective Jan. 18, 2027, opting to judge rewards arrangements case by case.
- The GENIUS Act bans stablecoin issuers from paying interest, but Coinbase pays 3.75% annually to Coinbase One members holding USDC.
- Stablecoins generated $292.1 million in net revenue for Coinbase in the second quarter, representing about a quarter of its total.
Source excerpt · Unchained
Under the GENIUS Act, the stablecoin law Congress passed in July 2025, companies that issue stablecoins can’t pay interest to the people who hold them. Some exchanges pay holders anyway. Coinbase (COIN) pays 3.75% a year to customers who hold USDC, the dollar-pegged stablecoin issued by Circle, as long as ... The post Are You Sure Your USDC Rewards Are Safe? appeared first on Unchained .